In 2013, not long after Dr T was appointed, the company sort approval from shareholders to provide him with long term incentives. One of the incentives was to provide loan funded shares. The cost of these at the time and therefor the loan provided was $1,560,000. Another condition was the loan could only be provided for 5 years.
For these shares to vest thereby allowing Dr T to benefit from this incentive he had to achieve certain criteria and should he do so a flow on benefit to shareholders that continued to hold through this period would accrue. The criteria was met in 2016 and the shares then continued to be held in trust until the $1,560,000 loan was repaid.
To pay back the loan, one option available within the scheme was to have the company buy back shares. Dr T has chosen to exercise this option for 501,607 shares and the funds from this buy back were used to repay the loan. the remaining shares were then free to be transferred out of the trust to Dr T.
NEU Price at posting:
$3.01 Sentiment: Buy Disclosure: Held
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